Written Commentary
GOLD / SILVER
In retrospect, the gold market has performed better than the silver market this week, with gold showing a more consistent pattern of buying interest, while silver has seen significant two-sided swings in a sign that traders are searching for a focus in that market. However, gold and silver both managed gains this week without sustained weakness in dollar and more importantly forged gains in the face of escalating Indian gold and silver demand fears.
PLATINUM / PALLADIUM
While palladium has managed to circumvent significant overbought technical signals many times over the last two months, it appears this week’s rally resulted in a reduction in open interest into the highs suggesting that some specs saw $2,900 as expensive pricing. We suspect that the market will be held back somewhat by news overnight that Anglo-American Platinum saw its quarterly PGM production increase by 7%, with the company indicating it would maintain its initial annual production targeting.
COPPER
Apparently the copper market does not need fresh bullish fundamental news to extend the move toward contract highs. Overnight the London market managed a third straight week of gains, saw strong spot demand and saw warehouse stocks fall throughout the week and that has prompted New York copper to post an early higher high for the move on the charts.
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